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IOC negotiates with Reliance for cheap cooking fuel
New Delhi, July 29
IndianOil Corp (IOC), the country’s largest oil firm, today said it was negotiating discounts on LPG and kerosene it buys from private sector Reliance Industries Ltd to minimise losses due to price freeze.

  • Suffers first-ever loss
  • HPL to encash IOC cheque

Reliance Capital to buy AMP Sanmar
New Delhi, July 29
Anil Ambani-controlled Reliance Capital Ltd (RCL) is all set to acquire AMP Sanmar, making it the first Indian private corporate entity to go solo in life insurance business without any foreign  partner.

BHEL divestment issue awaits govt nod
New Delhi, July 29
The government has not taken any further decision on the divestment of the state-owned Bharat Heavy Electricals Ltd (BHEL) following objections raised by workers union and others, Finance Minister P Chidambaram told the Lok Sabha today.



EARLIER STORIES

 
Newly-appointed Director-General of the WTO Pascal Lamy (left) of France speaks with outgoing Director-General Supachai Panitchpakdi during the opening of the General Council at the World Trade Organisation (WTO) headquarters in Geneva on Friday. Mr Lamy will assume office on September 1.
Newly-appointed Director-General of the WTO Pascal Lamy (left) of France speaks with outgoing Director-General Supachai Panitchpakdi during the opening of the General Council at the World Trade Organisation (WTO) headquarters in Geneva on Friday. Mr Lamy will assume office on September 1. — Reuters

EPF board meet put off
New Delhi, July 29
The Employees Provident Fund's board meeting, scheduled for tomorrow, to suggest interest rate for its investors for 2005-06, has been postponed at the eleventh hour.

PowerGrid to fund project in Bhutan
New Delhi, July 29
Public sector PowerGrid Corporation of India Ltd (PGCIL) will finance the construction of a 132 KV single circuit transmission line (60 km) from Deothang in Bhutan to Rangia in Assam along with associated bays, to provide adequate transmission arrangement for reliable operation of Kurichhu HEP (Bhutan).

Banks’ NPAs total Rs 58,091 crore
New Delhi, July 29
The gross non-performing assets (NPAs) of all scheduled commercial banks stood at Rs 58,091 crore as on March 31, 2005 and the top 10 defaulter companies owe Rs 3,908 crore to banks and financial institutions, Finance Minister P. Chidambaram told the Lok Sabha in a written reply today.

Govt to sell minority stake in profitable PSUs
New Delhi, July 29
The government today said it had decided in principle to sell its minority shareholding in listed, profitable Central Public Sector Enterprises provided it retained at least 51 per cent of shares and management control in such enterprises.

Corporate News

L&T to exit from tractor business
Mumbai, July 29
In line with its policy to focus on its core business, Larsen & Toubro today announced its exit from tractor manufacturing business.

  • Apollo Group
  • NASL dividend
  • Exide investment
Corporate Results

Nestle plans Rs 100-cr unit in Uttaranchal
New Delhi, July 29
Nestle India Ltd today said it will set up a new manufacturing facility in Uttaranchal at an investment of Rs 100 crore over the next two to three years.

  • Hindalco profit rises
  • Asian Paints net up
  • Tata Motors net zooms
  • IBP posts loss
  • Voltas gains 15 pc
  • Panacea profit jumps
  • JCT Limited
  • M&M profit grows


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IOC negotiates with Reliance for cheap
cooking fuel

Tribune News Service and PTI

New Delhi, July 29
IndianOil Corp (IOC), the country’s largest oil firm, today said it was negotiating discounts on LPG and kerosene it buys from private sector Reliance Industries Ltd to minimise losses due to price freeze.

“We are in talks with Reliance for volume discounts,” IOC chairman S Behuria told reporters here.

IOC, which last fiscal got some Rs 150 crore of discount of about 3.4-3.5 million tonnes of LPG and kerosene it bought from Reliance, this fiscal wants the private sector refiner to share at least one-third of the Rs 92 per cylinder loss on LPG and Rs 11 a litre loss on kerosene sale.

“There are various options and proposals currently being discussed. I would not like to elaborate on it,” he said.

IOC Director (Finance) S V Narasimhan said IOC in 2004-05 is likely to buy 1.1 million tonnes of kerosene and 2.6 million tonnes of LPG from Reliance.

“They (Reliance) have said they can give up to 4 million tonnes (of LPG and kerosene).” IOC is short in LPG and kerosene production and hence buys the two mass consumed cooking fuel from Reliance. It is picking smaller quantities of petrol and diesel from Reliance to meet the clean fuel requirements in the interim period to some of its refineries being upgraded to produce such fuels.

Mr Narasimhan said refinery transfer price of LPG and kerosene had been frozen since March to minimise its losses.

IOC lost Rs 1,277.91 crore on sale of kerosene in April-June quarter and Rs 554.67 crore on LPG due to government disallowing any retail price hike in line with the rise in cost of raw material.

Suffers first-ever loss

IndianOil Corporation (IOC) has reported the first-ever net loss of Rs 54.23 crore in the first quarter as against a profit of Rs 1,472 crore in the year-ago period. However, the company’s sales rose to Rs 38,624 crore from Rs 31,651 crore a year earlier.IOC, whose gross refining margin in April-June fell to $ 6.16 per barrel from $ 6.87 during corresponding period last year, had been facing a rise in crude oil prices of late, Mr Behuria said.

After last month’s Rs 2.50 per litre increase in petrol and Rs 2 a litre hike in diesel prices, the company earned a revenue of Rs 1,800 crore in July.

IOC’s subsidiary IBP Co ltd posted a net loss of Rs 233.97 crore this fiscal as against Rs 8.65 crore loss in April-June quarter last year.

“Input cost (crude oil price) has further gone up and there is no respite on retail pricing front. Obviously it will have an impact on our projects. We cannot sustain operations if we are not able to generate investable surplus,” he said.

The Rs 3,194.52 crore under-realisation on petrol, diesel, LPG and kerosene was after Oil and Natural Gas Corp (ONGC) and GAIL chipping in Rs 1,674.67 crore subsidy, without which IOC losses would have been close to Rs 1,000 crore.

“We have Rs 7,500 crore of ongoing projects and have planned investments of Rs 35,000 crore over the next five years as part of our corporate plan to become a $ 60-billion company. With these kind of losses, obviously it is not possible to fund them and we will be forced to re-consider some of them,” Mr Behuria said.

He said petrol is currently being sold at Rs 3.63 a litre below the cost, while diesel was under-priced by Rs 4.15 a litre. LPG is being sold at a loss of Rs 92 per cylinder and the company was losing Rs 11 on sale of every litre of kerosene..

IOC sold 11.85 million tonnes of petroleum products in the domestic market, besides exporting 0.55 million tonnes in the first quaarter of 2005-06. Its seven refineries together achieved a throughput of 9.18 million tonnes and the pipelines network transported 11.13 million tones of crude oil and products.

HPL to encash IOC cheque

In a new turn of events, Haldia Petrochemicals Limited (HPL) has agreed to encash a cheque for Rs 150 crore issued by IndianOil Corporation (IOC) for picking up 7.5 per cent stake in the company.

The HPL’s decision coincided with the West Bengal government deferring its decision to sell 36 per cent stake to The Chatterjee Group (TCG).

The sources in WBIDC told PTI that the HPL would encash the IOC cheque before it expired on August 18.

The IOC had issued the cheque dated February 18 this year, although the HPL management did not encash it due to opposition from TCG, the principle promoter of HPL with 61 per cent stake.

The oil PSU had also sought the intervention of Department of Company Affairs (DCA) in resolving the issue, followed by a recent visit of its chairman Sarthak Behuria who had urged chief minister Buddhadev Bhattacharjee to persuade the HPL management to encash the cheque.

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Reliance Capital to buy AMP Sanmar

New Delhi, July 29
Anil Ambani-controlled Reliance Capital Ltd (RCL) is all set to acquire AMP Sanmar, making it the first Indian private corporate entity to go solo in life insurance business without any foreign 
partner.

Active discussions are on and an announcement is expected shortly, a spokesperson of Reliance Capital said. They said Reliance Capital would be acquiring the stake of both Australia-based AMP Group and Chennai-based Sanmar, which have 26 per cent and 74 per cent, respectively. Although there were speculations that acquisition, close on the heels of taking over of Adlabs by Anil Ambani group, could be anywhere in the vicinity of Rs 300 crore, company officials did not talk about any figures.

Meanwhile, Reliance Capital informed the stock exchanges that "the company's subsidiary, Reliance Life Insurance Company is presently in active discussion to acquire 100 per cent shareholding of AMP Sanmar Life Insurance company." AMP Sanmar Life has a capital base of Rs 217.5 crore and recently the foreign partner had announced intentions to quit the joint venture, saying that it wanted to concentrate on the core expertise of wealth management.

Reliance Capital sources said it had already applied to the Insurance Regulatory and Development Authority (IRDA) for the renewal of their life insurance licence.

This would be the second acquisition by Anil, who had recently acquired the country's largest integrated film entity Adlabs for Rs 360 crore and is also on his way to foraying into DTH service.

Many, including Aviva had evinced interest in picking up the stake in AMP Sanmar, which has over 5 per cent market share among a dozen private entities. — PTI

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Anil to head Flag Telecom

Mumbai: Anil Ambani has taken over as the chairman of Flag Telecom, an international bandwidth subsidiary of Reliance Infocomm.

The other board members of Flag include Patrick Gallagher, B D Khurana and Ed McCormack, the company said in a press note today. Flag owns and manages an extensive optical fibre network spanning four continents and connecting key business markets, including Asia, Europe and West Asia.

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BHEL divestment issue awaits govt nod
Tribune News Service

New Delhi, July 29
The government has not taken any further decision on the divestment of the state-owned Bharat Heavy Electricals Ltd (BHEL) following objections raised by workers union and others, Finance Minister P Chidambaram told the Lok Sabha today.

"Letters have been received from workers unions and others opposing disinvestment in BHEL. The objections are under consideration. No further decision has been taken in the matter," he said in a written reply.

In May this year, the government had decided on an offer for sale of 10 per cent equity of BHEL out of the government's hodling of 67.72 per cent through book-building process.

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EPF board meet put off

New Delhi, July 29
The Employees Provident Fund's board meeting, scheduled for tomorrow, to suggest interest rate for its investors for 2005-06, has been postponed at the eleventh hour.

Official sources confirmed that the meeting of the Central Board of Trustees of EPFO has been put off because of "certain technical" reasons. Trade unions sources said they were informed of the development only at the eleventh hour and the officials had not given any reasons.

The meeting was convened mainly to arrive at interest rate for the over 4 crore EPF subscribers for this financial year.

Trade unions, one of the pillars in the tripartite board headed by Labour Minister, have already pitched for 9.5 per cent interest this year as well, while EPF said it may not be in a position to offer over 8 per cent interest, especially considering that it had already dipped into its reserves.

The EPF board had on May 28 recommended 9.5 per cent interest for 2004-05, leaving a Rs 716 crore deficit, which would be covered by dipping into its special reserves of Rs 950 crore. — PTI

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PowerGrid to fund project in Bhutan
Tribune News Service

New Delhi, July 29
Public sector PowerGrid Corporation of India Ltd (PGCIL) will finance the construction of a 132 KV single circuit transmission line (60 km) from Deothang in Bhutan to Rangia in Assam along with associated bays, to provide adequate transmission arrangement for reliable operation of Kurichhu HEP (Bhutan).

The Bhutan Power Corporation (BPC) on behalf of Royal Government of Bhutan has appointed PowerGrid Corporation of India Ltd as the consultant to execute this work from the concept to commissioning. The agreement in this regard was signed with BPC on July 19. The contract comes close on the heels of a Nepal project of PowerGrid. Yesterday, PGCIL bagged a consultancy assignment from Nepal Electricity Authority for the construction of first 220 KV transmission line in the Himalayan nation from Khimti to Dhalkebar, (75 km).

The project cost is estimated at $ 22 million and is being funded by the World Bank. The total consultancy fee is about Rs 1 crore and is being funded by the Nepal Electricity Authority.

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Banks’ NPAs total Rs 58,091 crore
Tribune News Service

New Delhi, July 29
The gross non-performing assets (NPAs) of all scheduled commercial banks stood at Rs 58,091 crore as on March 31, 2005 and the top 10 defaulter companies owe Rs 3,908 crore to banks and financial institutions, Finance Minister P. Chidambaram told the Lok Sabha in a written reply today.

He said that the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, has been enacted to facilitate recovery of outstanding loans.

The Act provides for enforcement of security interest for realisation of dues without the intervention of courts or tribunals. The government has also notified the Security Interest (Enforcement) Rules, 2002, to enable secured creditors to authorise their officials to enforce the securities and recover the dues from the borrowers.

He said that 29 Debt Recovery Tribunals (DRTs) and five Debt Recovery Appellate Tribunals (DRATs) have been set up all over the country for expeditious disposal of recovery suits filed by banks and financial institutions.

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Govt to sell minority stake in profitable PSUs

New Delhi, July 29
The government today said it had decided in principle to sell its minority shareholding in listed, profitable Central Public Sector Enterprises provided it retained at least 51 per cent of shares and management control in such enterprises.

The government equity in listed and profitable CPSEs may be diluted either in conjunction with fresh equity to be issued by such enterprises or indpendently, Minister of State for Finance S S Palanimanickam said in a written reply in the Lok Sabha.

The government has also decided to list currently unlisted, profitable CPSEs, each with a networth in excess of Rs 200 crore, he said. However, specific cases of disinvestment are to be approved on a case-by-case basis, he said. — PTI

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Corporate News

L&T to exit from tractor business

Mumbai, July 29
In line with its policy to focus on its core business, Larsen & Toubro today announced its exit from tractor manufacturing business.

The board of L&T has approved the divestment of its stake in L&T-John Deere Ltd, a joint venture with Deere & Co, in favour of the JV partner, L&T Chairman A M Naik said.

Apollo Group

Apollo Hospitals Group today said it would utilise the $ 70 million raised through its recent global depository receipt (GDR) issue for the construction of secondary care hospitals, technology upgradation and research purposes.

The Group has also signed an MoU with Johns Hopkins Hospital (JHH) for cooperation in clinical service, hospital administration and medical education, research, and setting up of a minimal invasive surgery institute in the country.

"We are looking at constructing six to seven secondary care hospitals for an investment of about Rs 120 crore... another Rs 60-70 crore will be spent on advance scientific research," Chairman Apollo Hospitals Group Prathap C Reddy said in New Delhi today.

NASL dividend

NTPC-Alstom Power Services Ltd (NASL), a joint venture of NTPC and Alstom Power Generation AG, Germany, has declared a dividend of 10 per cent for the year 2004-05. The NASL generated a revenue of over Rs 100 crore in 2004-05 from its operations in renovation and modernisation of power plants, and generated a net profit of Rs 3.3 crore during the last fiscal.

Exide investment

Exide Industries Limited, foraying into the life insurance sector by picking up stake in ING Vysya Life Insurance Company Pvt Ltd, has earmarked a total investment of Rs 400 crore for the life insurance venture in the next four years. “We have decided an initial investment of about Rs 250 crore for acquisition of shares and will invest a total of Rs 400 crore over next four years for life insurance from our internal accruals,” Exide chairman S B Ganguly said in Kolkata today. — Agencies/TNS

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Corporate Results

Nestle plans Rs 100-cr unit in Uttaranchal

New Delhi, July 29
Nestle India Ltd today said it will set up a new manufacturing facility in Uttaranchal at an investment of Rs 100 crore over the next two to three years.

The new facility would mainly manufacture culinary products and is expected to begin commercial production in the first half of 2006.

The factory, seventh in the country, is being set up in the hilly state to take the benefits of various tax benefits, Nestle India said in a release. The company today reported a 93.5 per cent year-on-year surge in net profit for the second quarter ended June 30, 2005, to Rs 82.77 crore. Net sales rose 19.7 per cent compared to the same period last year to Rs 615.77 crore during the quarter under review, it said.

Hindalco profit rises

Hindalco Industries Ltd today reported 37.90 per cent rise in net profit at Rs 324.9 crore for the quarter ended June 30, 2005 as compared to Rs 235.6 crore for the corresponding quarter in the previous fiscal.

Total income has increased 6.07 per cent to Rs 2241.4 crore for the quarter ended June 30, 2005 from Rs 2113.1 crore in the year-ago period, the company informed the Bombay Stock Exchange.

Asian Paints net up

Asian Paints (India) Ltd today reported a 32.57 per cent rise in net profit at Rs 44.36 crore for the first quarter in current fiscal against Rs 33.46 crore for the corresponding quarter in the previous fiscal.

Total income has increased 27.27 per cent to Rs 516.63 crore for the quarter ended June 30, 2005 from Rs 405.91 crore in the year-ago period, the company informed the BSE.

The group has posted a consolidated net profit of Rs 43.78 crore for the first quarter as compared to Rs 32.65 crore for the same quarter in 2004-05.

Tata Motors net zooms

Tata Motors Ltd today reported a 22.07 per cent rise in net profit at Rs 272.67 crore for the quarter ended June 30, 2005 as against Rs 223.36 crore for the same quarter in the previous year. Total income increased 8.94 per cent to Rs 3936.38 crore for the quarter ended June 30, 2005 as compared to Rs 3613.33 crore in the year-ago period, the company informed the Bombay Stock Exchange.

IBP posts loss

IBP Company Ltd today reported a net loss at Rs 233.97 crore for the quarter ended June 30, 2005 as compared to a net loss of Rs 8.65 crore for the corresponding quarter in 2004-05.

Total income has increased 12.65 per cent to Rs 3,721.81 crore for the quarter ended June 30, 2005 from Rs 3,303.83 crore in the year-ago period, the company informed the Bombay Stock Exchange.

Voltas gains 15 pc

Voltas Limited, an air conditioning and engineering services company of Tata Group, today posted 14.8 per cent rise in net profit at Rs 16.6 crore for the first quarter of this fiscal as compared to Rs 14.4 crore in the corresponding period last year.

Net sales for the quarter increased 31.7 per cent to Rs 455.5 crore as against Rs 345.8 crore in the year-ago period, a company statement said.

Panacea profit jumps

Panacea Biotec today reported a 145 per cent surge in net profit to Rs 21.40 crore in the first quarter this fiscal as compared to Rs 8.74 crore in the year-ago period.

Turnover during the quarter ending June 30, 2005, jumped by 63 per cent to Rs 160.94 crore as against Rs 98.64 crore in the first quarter of previous year.

JCT Limited

JCT Limited has earned a net profit after tax of Rs 3.70 crore during the first quarter ending June 30, 2005, as against the net loss of Rs 4.26 crore during the corresponding quarter of last year and net profit of Rs 2.10 crore for the full year of 2004-05. The company reported increase in PBIDT of 59.77 per cent and cash profit by 217.13 pc over the corresponding quarter last year.

M&M profit grows

Mahindra & Mahindra today reported a 40 per cent growth in net profit for the quarter ending June 30, 2005, at Rs 145.3 crore against Rs 103.9 crore for the corresponding quarter previous year.

M&M said gross sales and income from operations for Q1 of the current fiscal was Rs 2,049.2 crore as compared to Rs 1,686 crore in the same period last year.

“Net sales and income from Operations at Rs 1,811.9 crore for the current quarter registered a growth of 27 per cent over Rs 1,423.2 crore in Q1 last fiscal,” it said. — TNS, Agencies

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BRIEFLY

Folk dancers pose with the newly-launched Hindustan Machine Tools (HMT) ‘Yuva’ tractor in New Delhi on Friday. Launched by Minister of Heavy Industry and Public Enterprises Santosh Mohan Deb, it is priced at about Rs 1.85 lakh. The company plans to manufacture about 5,000 such tractors at the Pinjore plant. Its features would include fuel efficiency of 1.75 litre per hour on road and 2.25 litre per hour in the field under ideal conditions.” Folk dancers pose with the newly-launched Hindustan Machine Tools (HMT) ‘Yuva’ tractor in New Delhi on Friday. Launched by Minister of Heavy Industry and Public Enterprises Santosh Mohan Deb, it is priced at about Rs 1.85 lakh. The company plans to manufacture about 5,000 such tractors at the Pinjore plant. Its features would include fuel efficiency of 1.75 litre per hour on road and 2.25 litre per hour in the field under ideal conditions.” — Tribune photo by Rajeev Tyagi

BoB eyes Trinidad
Port of Spain, July 29
As part of its worldwide expansion plans, Bank of Baroda (BoB) will soon set up a branch in this Caribbean nation. The bank will set up a branch in this island nation as soon as the necessary legal documentation is completed, India’s High Commissioner to Trinidad and Tobago Virendra Gupta told reporters. He said the increase in trade, commerce and business activities between Trinidad and India was the reason for the bank to establish a subsidiary here. — PTI

Mr John Elliot, Sales Manager (Europe, West Asia and Africa) of GTCO Cal Comp (USA), launches Interwrite school pad, a bluetooth wireless device, for the first time in India at Chandigarh on Friday. Mitsubishi Electric, the industry leader in multimedia and home entertainment projector technology launched its new range of data and video products in the North Indian market in a tie-up with Global Infocom Limited and GTCO Cal Comp. The Interwrite school pad is priced at Rs 40,000 upwards.
Mr John Elliot, Sales Manager (Europe, West Asia and Africa) of GTCO Cal Comp (USA), launches Interwrite school pad, a bluetooth wireless device, for the first time in India at Chandigarh on Friday. Mitsubishi Electric, the industry leader in multimedia and home entertainment projector technology launched its new range of data and video products in the North Indian market in a tie-up with Global Infocom Limited and GTCO Cal Comp. The Interwrite school pad is priced at Rs 40,000 upwards. — A Tribune photograph

Inflation rises
New Delhi, July 29
A fuel price hike effected last month began showing its impact on the economy, as a slight northward movement in energy prices, along with that of food and manufactured products, pushed inflation to 4.18 in the week ended July 16, up by 0.04 per cent from the previous week. — UNI

CPI-IW
Shimla, July 29
The consumer price index for industrial workers (CPI-IW) base 1982-100 increase by two points during the month of June 2005 to stand at 529 while the 12 monthly moving average increased from 523.17 to 524.08 points Meanwhile, the point-to-point rate of inflation, based on the consumer price index-industrial workers (CPI-IW) has decreased from 3.74 per cent in May 2005, to 3.32 per cent in June 2005. — UNI

ITC to invest
Kolkata, July 29
ITC Limited, which has interests in businesses ranging from tobacco to tourism, today announced it would invest between Rs 14,000 to Rs 15,000 crore in the coming years across its portfolio. ITC Limited Chairman Y.C. Deveshwar said the company would invest to the tune of Rs 5,000 crore in expanding the e-choupal network. — PTI

Kanoria Chem
Kolkata, July 29
Kanoria Chemicals and Industries Limited (KCI) has drawn up plans to enter power generation business. KCI chairman and managing director R.V. Kanoria told reporters here that since the Renukoot works of the company in UP was located in the heart of the coal belt, entering the power sector as a separate line of business would make perfect sense, he added. — PTI

Tie-up
Chandigarh, July 29
Ebony Retail Holdings has tied up with IOC wherein a customer who shops for more than Rs 3,000 at an Ebony outlet would be entitled for three litres of free petrol and five litres of it on every shopping worth Rs 5,000 at any of the IOC outlet. — TNS

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